The U.S. housing market deals with another blow as mortgage rates rise to the highest level in 23 years.
The 30-year fixed-rate mortgage averaged 7.31% as of September 28, according to data released by Freddie Mac
FMCC,
on Thursday.
It’s up 12 basis points from the previous week — one basis point is equal to one-hundredth of a percentage point. Rates are also at the highest level since December 2000.
A year ago, the 30-year was averaging at 6.7%.
The average rate on the 15-year mortgage was 6.72%, up from 6.54% last week. The 15-year was at 5.96% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 7.65% as of Thursday afternoon.
What Freddie Mac said: “Unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory,” Sam Khater, chief economist at Freddie Mac, said in a statement. “These headwinds are causing both buyers and sellers to hold out for better circumstances.”
An increase in mortgage rates in August pushed pending home sales down to the lowest level since April 2020. The median price of an existing home was $407,100.
What are they saying? “Rates over 7% and low for-sale inventory continue to create affordability challenges for prospective buyers,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement. “Until rates start to come back down, we anticipate housing market activity will remain slow.”
Read the full article here